Lees Foods’ Patisserie UK subsidiary has been placed into administration after attempts to sell it as a going concern proved unsuccessful.
Patisserie UK, a bespoke manufacturer of cakes, desserts and biscuits, suffered due to the loss of a major customer - Costa Coffee - last year.
When Lees Foods acquired the business in 2007, Costa represented 75% of Patisserie UK’s sales, but according to the company, within three weeks of the acquisition Costa announced it was to source a quarter of this business elsewhere.
"In late December 2008, Costa Coffee notified Patisserie UK that it would be transferring all of its then remaining requirements from Patisserie UK to other suppliers," read a statement from Lees.
Following a trading update from the company in February, its directors carried out a review of the business after a "disappointing" performance in 2008.
According to Lees Foods, its other subsidiaries - Lees of Scotland and Waverley Bakery - will not be affected by the decision and continue to trade in line with expectations.